I think you are getting confused there between a "commercial law firm" and a corporate law firm.
My firm calls itself a commercial law firm, and we don't do much (although a little) IPO and M&A stuff. Or much international. Lots of commercial property, and we have some very big retail and food-business clients, and lots of commercial litigation too. We have a strong IP/IT department and employment team, and our CoCo team are well-known for being franchising experts, and the finance work is second to that.
The question the firm want to know is, why do you want to work for businesses rather than private clients? What is your motivation and expectations for a commercial as opposed to solving problems for people in their personal capacity (family, crime, estate, etc). Business and law don't always run side by side, but can you compare and contrast and find the best solution for your client?
As for tiers, it's probably that I have no experience (being outside London) of the firm-grading you are talking about, but that makes no sense to me, especially in context of your question.
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